Open Interest
Open interest is the total number of active derivative contracts that have not yet been closed or settled.
Open interest measures how many futures or options contracts remain open. It increases when new long and short positions are created and decreases when existing positions are closed, expired, or settled.
Traders use open interest with price and volume to understand market participation, but it is not a standalone prediction. Rising price with rising open interest may show new positioning; rising price with falling open interest may reflect shorts closing rather than fresh demand.
Related terms
2 linkedExplore connected entries beyond the alphabetical index.
Options
→Derivatives granting the right, not the obligation, to buy (call) or sell (put) an asset at a specified strike price by a certain date.
Futures
→Futures are derivatives for long or short exposure to an asset; crypto markets commonly use perpetual futures with no expiry.
All terms and definitions may update as the Cryptionary improves.
